Switching from a secure card to a credit card at the same company? HELP!

Switching from a secure card to a credit card at the same company? HELP!

Hi,

I am interested in switching from my secure card to a normal card with rewards but when I called my CC company they said that I would have to apply for a new card and then if approved I could just close my secured card. I am not worried about being approved as my credit is excellent but what I am worried about is my credit taking a hit when I do this. I know that one of the things that affects your score is the length of time you have accounts open so if I was to open a new card and then close my old secured card the length of time would decrease significantly. I also dont want to leave my secured card open because your score is also negativly affected when you have to many lines of credit open. has anyone ever had this problem or how to you reccomend switching cards within the same company but keeping the line of credit open? instead of opening a new line and then closing the old? HELP!

Re: Switching from a secure card to a credit card at the same company? HELP!

I would highly suggest you do no close your secured card until you get other credit cards. Having two credit cards is not too many. Closing your secured card will no hurt your credit score if you close it because it will continue to be on your report for ten years. Only close it if you dont have a balance on it though.

How long have you had your secured credit card?

Do you have anything else on your credit report?

I would personnly recommed you getting a credit card from a credit union first instead of getting a rewards credit card first. Reward credit cards generally have much higher APR interest rates with lower credit lines and ingeneral credit union credit cards are easier to get and usually have lower APR rate.

Re: Switching from a secure card to a credit card at the same company? HELP!

I have had my secure card for right over a year now. I also have a CC from my credit union with a limit of $500 dollars but it only reports on one report. My car is paid for, I have $5000 in student loans and I bought a house in august. Currently I put 20% on my cards and pay them off each month. I have NEVER carried a balance. The only reason I want a new card is for rewards and also in case there was ever an emergency. I just dont understand why the CC Company wouldnt switch me over to a better card when I want to continue to do business with them. The secure card originally had a limit of $200 a month that at the beginning I had to put a deposit down on. Since then they have increased it to $300.

I had to get a secure card to start out because I had no credit history and I was diagnosed with cancer right out of college and had medical bills go to collection by mistake of the physicians office. That has since been taken care of and removed (and yes I know the difference between removed and paid... they are completely off my report) from my credit and my score is now 150 points higher with no negative accounts. I have a 760+ credit score.

Re: Switching from a secure card to a credit card at the same company? HELP!

Well that is total BS that your CC only reports on one report. Find a credit union that sucks less?

Maybe the specific rewards credit card you were requesting was not option from that company. They just might require you open a new credit card instead of doing a product change from their secured credit card. What CC company is it?

20% utilization is good but apparently less is better.

*** Sorry to hear about cancer right after college, I hope your doing alright with that.

Re: Switching from a secure card to a credit card at the same company? HELP!

LCGirl wrote:

I have a 760+ credit score.

You say that you have a 760+ credit score but, what is your FICO® score?

I understand wanting to transfer from your secured card to enjoying an unsecured rewards card, I can totally idenitfy with you on that! Have you checked out the pre-approval page for a Discover card? They have a good rewards card. Also, Chase Freedom is a great rewards card. And, lots of people like the Bank of America rewards card. Do some research and see which rewards card you like the best.

Re: Switching from a secure card to a credit card at the same company? HELP!

LCGirl wrote:

Hi,

I am interested in switching from my secure card to a normal card with rewards but when I called my CC company they said that I would have to apply for a new card and then if approved I could just close my secured card. I am not worried about being approved as my credit is excellent but what I am worried about is my credit taking a hit when I do this. I know that one of the things that affects your score is the length of time you have accounts open so if I was to open a new card and then close my old secured card the length of time would decrease significantly. it may take a hit initially (because of the inquiry, possibly a hit to your AAoA's and the New Acct) but it will bounce back and then some in 6/12 months, only time will tell that. Another thing, weather your secured card is opened or closed, it will remain on your reports for 10 years, contributing to your AAoA's till it falls off in 10 years, the only way closing a CC can only hurt you if it raises your util, in no other way can closing a CC hurt you.I also dont want to leave my secured card open because your score is also negativly affected when you have to many lines of credit open.this can be true and false, I have 14 open TL's on my TU report and my FICO is 799 and I have 13 open TL's on my EQ report and my FICO is 802, so where you are now, you have nothing to worry about. has anyone ever had this problemnot as of yet. or how to you reccomend switching cards within the same company but keeping the line of credit open? instead of opening a new line and then closing the old? HELP! if the CCC you have your secured card with now won't let you graduate the card to an un-secured card, then you will have to apply for a new CC. You do not have to close the secured card, you can if you like, it will not hurt you (again, unless it raises your util to a point that FICO will adversly affect your score) normally FICO likes consumers at 9% util and below, but not 0%, it's always best to allow ONE CC to report a small balance that will keep your overall revolving debt to credit at 9% or less.

Re: Switching from a secure card to a credit card at the same company? HELP!

LCGirl wrote:

I have had my secure card for right over a year now. I also have a CC from my credit union with a limit of $500 dollars but it only reports on one report. My car is paid for, I have $5000 in student loans and I bought a house in august. Currently I put 20% on my cards and pay them off each month. I have NEVER carried a balance. The only reason I want a new card is for rewards and also in case there was ever an emergency. I just dont understand why the CC Company wouldnt switch me over to a better card when I want to continue to do business with them. The secure card originally had a limit of $200 a month that at the beginning I had to put a deposit down on. Since then they have increased it to $300.

I had to get a secure card to start out because I had no credit history and I was diagnosed with cancer right out of college and had medical bills go to collection by mistake of the physicians office. That has since been taken care of and removed (and yes I know the difference between removed and paid... they are completely off my report) from my credit and my score is now 150 points higher with no negative accounts. I have a 760+ credit score.

Your AAofA will go down a little but it is already low so it should not have much effect and it will continue to grow with time.

Now that you have a clean report (very big deal), I suggest you go ahead and apply for a new rewards card. And not worry so much about this.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation.
Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies.
Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.
FTC's website on credit.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.